Nucor stock rallies as profit soars and tops expectations, as steel prices per ton nearly doubles

Shares of Nucor Corp.
NUE,
-1.22%
rallied 2.1% in premarket trading Thursday, to bounce off a six-month closing low in the previous session, after the steel maker fourth-quarter profit that rose above expectations while sales nearly doubled but came up shy, and said demand is expected to remain strong to start 2022. Net income jumped to $2.25 billion, or $7.97 a share, from $398.8 million, or $1.30 a share, in the year-ago period. The FactSet consensus for earnings per share was $7.85. Sales grew 97.0% to $10.36 billion, as the average sales price per ton increased 99%, but was below the FactSet consensus of $10.45 billion. Total steel mill shipments rose 1%. “End use market demand remains strong for steel and steel products, and we are confident that 2022 will be another year of strong profitability for Nucor,” the company said in a statement. The stock has tumbled 14.0% over the past three months through Wednesday, while the SPDR Materials Select Sector ETF
XLB,
-1.04%
has slipped 2.6% and the S&P 500
SPX,
-0.15%
has declined 4.4%.